FAS Prepared by: Benefits and Entitlements Branch, May 2006

Transcription

1 FAS Prepared by: Benefits and Entitlements Branch, May 2006 For Additional Information: (703) or DSN FAX: (703) or DSN REFERENCE GUIDE SPECIAL RETIREMENT PROVISIONS FOR LAW ENFORCEMENT OFFICERS, FIREFIGHTERS AND AIR TRAFFIC CONTROLLERS A Guide for Human Resources Specialists Defense Civilian Personnel Management Service Field Advisory Services Division 1400 Key Boulevard, Suite B-200 Arlington, VA FAS 1 of 58 May 2006

2 Introduction The purpose of this module is to provide human resources specialists a simple, clear document dealing with the special retirement provisions for law enforcement officers (LEOs), firefighters (FFs) and air traffic controllers (ATCs). This module should be for quick reference to the major provisions in law and regulation. It is not intended to be a complete, all-encompassing reference document. For this reason, we have included the statutory and regulatory references that can be used by the human resources specialist to answer questions or counsel employees in the course of their day-to-day responsibilities. The bulk of this module is devoted to LEOs and FFs because of the complexity of the program and the number of positions involved. A LEO or FF is an employee who occupies a position designated by the Agency Head (or designee) as a LEO or FF position. Employees in these positions pay an extra ½ percent salary deduction to the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) because of the special retirement coverage. The special retirement provisions for LEOs and FFs allow these individuals to receive special retirement benefits after meeting the age and service requirements. Generally, employees covered under these special retirement provisions may retire at an earlier age with fewer years of service. However, these positions have a mandatory separation based on age as well. Issues involving law enforcement and FF coverage and eligibility are often complex. This module provides information to assist in resolving these issues. Only two Federal agencies have ATC positions, the Department of Defense (DoD) and the Department of Transportation. There are less than 1,200 ATC employees in DoD. In Defense, the Component Heads have the authority to determine whether an ATC position meets the requirements for special retirement coverage. ATCs under CSRS and FERS can retire early and are subject to mandatory separation provisions, but there are differences in each retirement system. Under CSRS, ATCs are not required to pay extra retirement deductions and their retirement annuity is computed using the CSRS general formula, with a guaranteed minimum provision. Under FERS, ATCs pay an extra ½ percent into the retirement fund and if the employee has at least 20 years of ATC service, the annuity is computed using the Special Retirement Formula. An employee with at least five years of frontline ATC service (actively engaged in the separation and control of air traffic) may receive an enhanced annuity (see page 49 for more information). If you have any questions, we invite you to contact our office for information from one of our Benefits and Entitlements (B&E) advisors: by benefits@cpms.osd.mil; by telephone (703) , DSN ; or by fax (703) , DSN FAS 2 of 58 May 2006

3 Table of Contents Section I Law Enforcement Officers and Firefighters... 4 Background... 4 Legislative History...5 Special Retirement Provisions for Law Enforcement Officers (LEOs)... 9 Special Retirement Provisions for Firefighters (FFs) Service Credit Tips Steps for Determining CSRS & CSRS-Offset Special Retirement Coverage Steps for Determining FERS Special Retirement Coverage Frequently Asked Questions Firefighter Pay for Retirement and Life Insurance Firefighter Sick Leave Conversion Worksheet 1: Old Formula for Computing FFs Annual Salary Worksheet 2: New Formula for Computing FFs Annual Salary, Unusual Tour Worksheet 3: New Formula for Computing FFs Annual Salary, Embedded Tour 44 Section II Air Traffic Controllers Special Retirement Provisions for Air Traffic Controllers (ATCs) Section III Public Safety Officers Benefits (PSOB) Program Section IV Sample Letters Sample Letter CSRS LEO/FF Certification Sample Letter FERS LEO/FF Certification Sample Letter LEO/FF Disability Retirement Certification Sample Letter LEO/FF Mandatory Separation Sample Letter ATC Certification Sample Letter ATC Mandatory Separation FAS 3 of 58 May 2006

4 Section I Law Enforcement Officers and Firefighters Background The legislative intent behind the special retirement provisions for LEOs and FFs was to provide for their early retirement based on a determination that these positions should be composed, insofar as possible, of young men and women physically capable of meeting the vigorous demands of occupations that are far more physically taxing than most in the Federal service. The special retirement provisions allow LEOs and FFs to retire early with enhanced annuities. Under CSRS and FERS, LEOs and FFs can retire at age 50, if they have completed 20 years of service as a LEO/FF. FERS also provides that LEOs/FFs may retire at any age, if they have at least 25 years of LEO/FF service. Under CSRS, the retirement annuity formula for LEOs/FFs is 2.5 percent of their high-3 average salary for the first 20 years of LEO/FF covered service, and 2 percent of their high-3 average salary for any years of service over 20 years and other than LEO/FF service. Under FERS, the retirement annuity formula is 1.7 percent of their high-3 average salary for the first 20 years of LEO/FF covered service, and 1 percent of their high-3 average salary for any years of service over 20 years. Under both CSRS and FERS, the retirement system deductions for LEOs/FFs are ½ percent more than for regular employees. To meet the goal of maintaining a young and vigorous LEO/FF work force, a mandatory separation provision was added to the law. This provides that LEOs and FFs will be separated at age 57, if they have 20 years of LEO and/or FF covered service. Employees, who do not have 20 years of LEO/FF service at age 57, are separated at the end of the month in which they attain 20 years of LEO/FF service. However, if an employee with 20 years of LEO/FF covered service is no longer in a LEO/FF covered position, the mandatory separation provisions do not apply. The law also allows Federal agencies to establish maximum entry ages for LEO/FF positions. Within DoD, the maximum entry age for LEOs/FFs is age 37. When a new position is created or when an existing position description is rewritten within DoD, the employing office can request a position determination (a request, that if approved, allows all employees in the position to be covered under the special retirement provisions for LEO/FF). Prior to Dec 7, 1993, all employing offices were required to write to the Office of Personnel Management (OPM) in Washington, D.C., for position determinations. An employee who had service in a position that was not approved for special retirement coverage, could request that their agency submit their individual service credit determination to OPM (a request, that if approved, would allow that employee to receive credit for service under the special retirement provisions FAS 4 of 58 May 2006

5 for LEO/FF). If OPM denied the request, the employee could then appeal the decision to the Merit Systems Protection Board (MSPB). The Federal Employees Retirement System Act of Jun 6, 1986, provided that agency heads approve coverage for all FERS positions. This was later amended to allow agency heads to designate an agency official no more than one level below to make these decisions. On Dec 7, 1993, OPM delegated the authority for approving special retirement coverage for CSRS positions to the Agency Head (Secretary of each Federal agency), or their designee. Within DoD, this authority has been delegated to the Under Secretary of Defense (USD), Personnel and Readiness (P&R). Requests for special retirement coverage (position determinations and individual service credit determinations) must first be submitted to the local employing office. The requests are sent up through channels within the Component (Army, Navy, Air Force, Defense Field Activities, and Defense Agencies) headquarters. If the Component recommends approval, the request comes to our office, Civilian Personnel Management Service (CPMS), Field Advisory Services (FAS). After our office reviews the request, it continues up through channels to the Agency Head, USD (P&R). The head of the Component (or their designee) may disapprove requests that do not satisfy the requirements under CSRS and FERS. If a request for an individual service credit determination is denied by the Component, the employee will have the right to appeal that decision to the MSPB, Legislative History Public Law (Jul 11, 1947) Congress extended preferential retirement provisions to agents and similar employees of the Federal Bureau of Investigation (FBI). Retirement at age 50 after at least 20 years of service in certain positions. Incentive for agents to remain in Federal service rather than leave for higher paying jobs in private industry. Reward agents for their arduous, hazardous work (not unlike the favorable legislation enacted for certain Foreign Service officers). Encourage experienced agents to continue in service to benefit the government and maintain a vigorous youthful workforce. Provide liberalized benefits similar to state and local governments for their LEOs. Enhanced annuity formula: Two percent of average basic salary for the five years immediately proceeding retirement for each year of service performed. (Maximum annuity of 60 percent of average salary.) FAS 5 of 58 May 2006

6 At that time, annuities of all other retirees were determined on an actuarial basis, with a maximum of 80 percent. Federal employees were generally eligible to retire at age 55 with a reduction or age 60 after 30 years of service or at age 62 after 15 years of service. Public Law (Jul 2, 1948) Extended the benefits for FBI agents to other Federal employees in similar positions with similar duties. Employees covered were those whose primary duties were the investigation, apprehension or detention of persons suspected or convicted of offenses against the criminal laws of the United States, including any officer or employee engaged in such activity who had been transferred to a supervisory or administrative position. The head of each agency was responsible for recommending, on an individual basis, applications for the preferential retirement. The Civil Service Commission, determined whether each applicant's duties satisfied the criteria set forth in law. (NOTE: Under Reorganization Plan No. 2 of 1978, effective Jan 1, 1979, OPM succeeded the Civil Service Commission in administering the Civil Service Retirement laws). In arriving at these determinations, full consideration was given to the degree of hazard to which the officer or employee was subjected in the performance of their duties, rather than the general duties of the class of position held by the officer or employee. Public Law (Aug 16, 1949) Provided for LEO's average salary to be computed over a period of any five consecutive years of Federal Service. Previously, the average salary had been based on the last five years of service. Benefited those employees who were demoted to lower grade positions when impaired health might have affected the level of performance as LEO. Public Law (Jul 31, 1956) Detention was construed to include the duties of most non-guard prison personnel in the Federal civilian service. Limitation of 60 percent of average pay for LEOs retiring under the special provisions was repealed. The annuity limit for LEOs changed to 80 percent (same as other CSRS retirees). Public Law (Aug 14, 1972) Federal FFs granted the same benefits, which had previously been available only to LEOs. FAS 6 of 58 May 2006

7 Public Law (Jul 12, 1974) Hazard requirement deleted. Annuity formula changed: percent of high-three average salary ( high-3 ) for the first 20 years of LEO/FF service, plus - 2 percent of high-three average salary for each year exceeding 20 years. Allowed retirement at age 50 after 20 years of LEO/FF service, regardless of the employee's job at the time of retirement. Previously, employees had to be serving in LEO/FF positions to be eligible for special retirement. Effective Jan 1, 1975, the retirement deductions for employees serving in LEO/FF positions was increased by ½ percent. Premium pay for administratively uncontrollable overtime (AUO) was included in LEOs basic pay for high-3 average salary. Effective Jan 1, 1978, LEOs/FFs became subject to mandatory separation at age 55, provided they had completed 20 years of qualifying service. An agency head, however, was authorized to exempt an employee from retirement until age 60 if the public interest so required. Agency heads were authorized, with the concurrence of OPM, to establish the minimum and maximum limits of age within an original appointment that might be made to a LEO/FF position (as defined in 5 U.S.C. 8331(20) and (21)). Public Law , Jun 6, 1986 (FERS) Special retirement positions covered under FERS were approved by Agency head or their designee. Dec 1987 Any employee who believed they had service that met the definitions of LEO/FF service could submit a request to their employing offices for review (i.e. an individual service credit request). Employing office would forward the request to OPM for a final determination. Sep 30, 1989, was the deadline for submission of requests to OPM. Requests received after Sep 30, 1989, would be reviewed by the agency. If LEO/FF credit was approved by the agency, credit was limited to one year prior to the date of the request (unless the timeliness requirement was waived by the agency head). Jan 19, 1988 Transfer requirements and conditions for coverage in secondary positions published on Dec 17, 1987, were effective Jan 19, Under prior regulations published on Jan 4, 1980, (now superseded) LEOs and FFs who were employed on or after Dec 31, 1979, were deemed to have met the transfer requirement for all subsequent employment in secondary positions (except as reemployed annuitants) if the initial transfer from a primary position met the requirements. FAS 7 of 58 May 2006

8 Do not count a break in employment in secondary positions that began before Jan 19, 1988, or a break that was based on an involuntary separation (not for cause) within the meaning of 5 U.S.C. 8336(d) in determining whether service in secondary positions is continuous for this purpose. Nov 1990 The mandatory separation age for LEOs changed from age 55 to age 57. Dec 7, 1993 The authority to determine special retirement coverage or credit (i.e., agency requests for position coverage, individual service credit requests, and individual position coverage requests) under CSRS was delegated from OPM to the Agency heads. OPM maintains a regulatory oversight function. Public Law (Oct 11, 1998) Firefighter Overtime Pay Reform Act (FFOPRA) was enacted on Oct 21, 1998, and was effective for the DoD on Oct 11, The Act significantly altered the way in which FF pay entitlements were calculated. Since modifications to the Department s standard civilian pay system could not be put in place immediately, an interim solution was developed to pay approximately 80 percent of the new entitlements, without intentionally causing overpayments. The interim solution used pre-ffopra calculations and was effective from Oct 11, 1998, until Aug 14, Public Law (Aug 20, 2001) Federal Firefighters Retirement Age Fairness Act changed the mandatory separation age for FFs from age 55 to age 57. Public Law (Nov 12, 2001) Section 640 of the Treasury and General Government Appropriations Act, 2002 changed the CSRS mandatory separation provision for ATCs to allow ATC to reach retirement eligibility. ATCs shall be separated from the service on the last day of the month in which they become 56 years of age or complete the age and service requirements for an annuity under section 8336, whichever occurs later. Public Law (Feb 20, 2003) Section 648 of the Consolidated Appropriations Resolution, 2003 changed the CSRS mandatory separation provision for ATCs to allow ATCs to reach special retirement eligibility under 5 U.S.C. 8336(e). The change was effective Jan 1, ATCs shall be separated from the service on the last day of the month in which they become 56 years of age or complete the age and service requirement for a special ATC annuity under section 8336(e), whichever occurs later. FAS 8 of 58 May 2006

9 Public Law (Dec 12, 2003) Section 226 of the Vision 100-Century of Aviation Reauthorization Act amended Chapters 83 (CSRS) and 84 (FERS) of title 5 U.S.C. to add the definition of an ATC to each cited chapter. The new definition includes the class of employees traditionally considered to be ATC and expands the definition to include second-level supervisors. In addition, 5 U.S.C. 8335(a) is amended to exempt this class of employees (second-level supervisors) from mandatory retirement (similarly amends 8425(a)). Effective Feb 10, 2004, second-level ATC service performed before Feb 10, 2004 is creditable as ATC service for CSRS and FERS retirement purposes when retirement eligibility is based on a separation that occurred on or after Feb 10, FERS ATC second-level supervisors must pay a deposit to make the service creditable. CSRS ATC second-level supervisors are not required to make a deposit to make the service creditable. FERS Employees who retire or die on or after Feb 10, 2004, are eligible for an enhanced annuity if they have at least five years of frontline (actively engaged in the separation and control of air traffic) ATC service. The annuity computation for the five plus years of frontline ATC service will be credited at the 1.7 percent rate rather than the 1.0 percent or the 1.1 percent rate otherwise payable. Special Retirement Provisions for Law Enforcement Officers (LEOs) TOPIC CSRS FERS References United States Code: 5 U.S.C (20); 8335(b); 8336(c) Code of Federal Regulations: 5 C.F.R. 831, Subpart I The CSRS and FERS Handbook for Personnel and Payroll Offices: Chapters 46, 54, 61 and 70 DoD CPM Subchapter 336 Rules and When They Apply The CSRS definitions of LEO apply to any service performed before After 1986 and before an employee first becomes subject to FERS deductions, if that service was either: Covered by CSRS deduction at the time it was performed, or Not subject to retirement United States Code: 5 U.S.C (17); 8412(d); 8425 Code of Federal Regulations: 5 C.F.R. 842, Subpart H The CSRS and FERS Handbook for Personnel and Payroll Offices: Chapters 46, 54, 61 and 70 DoD CPM Subchapter 336 The FERS definitions of LEO apply to any service performed after 1986 and subject to FERS deductions, or nondeduction service before or after becoming covered by FERS that is creditable under FERS annuity computation rules. Nondeduction service performed on or after Jan 1, 1989, FAS 9 of 58 May 2006

10 Rules and When They Apply (continued) Special Retirement Provisions for Law Enforcement Officers (LEOs) TOPIC CSRS FERS deductions but creditable in the CSRS component of a FERS annuity. Service under the CSRS Interim or Offset provision is subject to the CSRS definition although the service may become creditable under FERS for annuity entitlement and computation purposes. The determination as to whether any service meets the CSRS definitions of LEO must be made under CSRS rules. Law Enforcement Officer (LEO) Definitions NOT Included in the LEO Definitions Primary Duties Definition An employee in a position whose duties are primarily the investigation, apprehension, or detention of individuals suspected or convicted of offenses against the criminal laws of the United States. Also included is an employee engaged in this activity who moves directly to a secondary position. is not creditable under FERS. (NOTE: The service can be used for meeting the FERS 3-year rigorous transfer requirement.) An employee occupying a rigorous position whose primary duties are the investigation, apprehension, or detention of individuals suspected or convicted of offenses against the criminal laws of the United States, OR the protection of officials of the United States against threats to personal safety. (This includes certain officers in the U.S. Park Police and in the Uniformed Division of the Secret Service.) Also included is an employee engaged in this activity who moves directly to a secondary position. The LEO definition does NOT include an employee whose primary duties involve: Maintaining law and order, Protecting life and property, Guarding against or inspecting for violations of law, OR Investigating persons other than persons who are suspected or convicted of offenses against the criminal laws of the United States. Those duties of a position that: Are paramount in influence or weight; that is, constitute the basic reasons for the existence of the position; FAS 10 of 58 May 2006

11 Special Retirement Provisions for Law Enforcement Officers (LEOs) TOPIC CSRS FERS Primary Duties Definition (continued) Occupy a substantial portion of the individual s working time over a typical work cycle; and Are assigned on a regular and recurring basis. Primary (CSRS) and Rigorous (FERS) Definitions Secondary Position Definitions Conditions for Coverage - Primary (CSRS) and Rigorous (FERS) Duties that are of an emergency, incidental, or temporary nature cannot be considered primary even if they meet the substantial portion of time criterion. A position whose primary duties are: Investigating, apprehending, or detaining individuals suspected or convicted of offenses against the criminal laws of the United States. NOTE: Although CSRS regulations do not label positions as rigorous or require employees to be young and physically vigorous, maximum entry age and physical qualification standards apply to CSRS primary positions. A position in which the duties are so rigorous that employment opportunities should be limited through establishment of a maximum entry age and physical qualifications, to young and physically vigorous individuals, whose primary duties are: Investigating, apprehending, or detaining individuals suspected or convicted of offenses against the criminal laws of the United States or protecting the personal safety of United States officials. A position that: Is in the LEO field; Is in an organization having a LEO mission; and Is either: Supervisory, that is, a position whose primary duties are those of a first-level supervisor of LEOs in primary positions; or Administrative, that is, an executive, managerial, technical, semiprofessional, or professional position for which experience in a primary LEO position, or equivalent experience outside the Federal government, is a mandatory prerequisite. An employee s service in a position that has been determined by the Agency Head to be a primary position is covered under the special group provisions for LEOs. An employee s service in a position that has been determined by the Agency Head to be a qualifying rigorous position is covered under the special group provisions for LEOs. FAS 11 of 58 May 2006

12 Conditions for Coverage Secondary Positions TRANSFER REQUIREMENT Special Retirement Provisions for Law Enforcement Officers (LEOs) TOPIC CSRS FERS An employee s service in a position that has been determined by the Agency Head to be a qualifying secondary position is covered under the special provision, if all the following requirements are met: The employee, while covered under the special provision, moves directly (that is, without a break in service exceeding 3 days) from a primary position to a secondary position; and If applicable, the employee has been continuously employed in a secondary position or positions since moving from a primary position without a break in service exceeding 3 days. Requests from Employees or Individuals An employee or former employee (or survivor of a former employee) who believes that a period of service in an unapproved position qualifies as service in a primary or secondary position may request a determination that the service is creditable under the special provisions for LEOs. LEO credit for past service generally will not be granted for a period greater than one year prior to the date that the request was received from the individual. An employee s service in a position that has been determined by the Agency Head to be a qualifying secondary position is covered under the special provision, if all the following requirements are met: The employee, while covered under the special provision, moves directly (that is, without a break in service exceeding 3 days) from a rigorous position to a secondary position; and The employee has completed 3 years of service in a rigorous position, including any such service during which no FERS deductions were withheld; and If applicable, the employee has been continuously employed in a secondary position or positions since moving from a primary position without a break in service exceeding 3 days. If an employee is not in an approved LEO position (rigorous or secondary), the employee may, within 6 months after entering the position or within 6 months after any significant change in the position, formally and in writing seek a determination from the employing agency regarding their position. If the employee does not request a position determination within 6 months, the Agency Head s FAS 12 of 58 May 2006

13 Special Retirement Provisions for Law Enforcement Officers (LEOs) TOPIC CSRS FERS Requests from Employees or Individuals (continued) The employee (former employee or survivor) bears the burden of proof with respect to credit under the special provisions covering LEOs. Retirement Code Retirement Contributions Retirement Eligibility Requirements The request may be submitted to the current or former employing office or OPM. Documentation may include a list of the provisions of Federal criminal law the incumbent was responsible for: enforcing and arrests made, investigative reports, etc. An employee (former employee or survivor) may appeal the final Agency decision to the MSPB. CSRS = 6 (code eff. Oct 1, 1980) CSRS-Offset = E Additional deductions of ½ percent must be withheld from pay for covered/creditable service on/after Jan 1, Age 50 with 20 years of LEO service. The employee does not need to separate from a LEO position to be eligible for special retirement. The employee must be separated from a position covered by retirement deductions and meet the CSRS one-out-of-two requirement. determination that the service was not covered under the special group provisions at the time the service was performed is presumed to be correct. This presumption may be rebutted by a preponderance of the evidence that the employee was unaware of their status or was prevented by cause beyond their control from requesting that the official status be changed at the time the service was performed. In response to the individual request for approval of a position as a LEO, the agency must issue a written decision. An employee may appeal the final Agency decision to the MSPB. FERS = M Additional deductions of ½ percent must be withheld from pay for covered/creditable service. Age 50 with 20 years of LEO service, or Any age with 25 years of LEO service. The employee does not need to separate from a LEO position to be eligible for special retirement. The employee must be separated from position covered by FERS. FAS 13 of 58 May 2006

14 Annuity Computations Special Retirement Provisions for Law Enforcement Officers (LEOs) TOPIC CSRS FERS 2.5 percent X High-3 Average Salary X 20 Years of LEO Service plus 2 percent X High-3 Average Salary X Additional years of creditable service exceeding 20 years (LEO & non-leo) 1.7 percent X High-3 Average Salary X 20 Years of LEO Service plus 1 percent X High-3 Average Salary X Additional years of creditable service exceeding 20 years (LEO & non-leo) Detailed examples of annuity computations can be found in CSRS & FERS Handbook, Chapter 54, Section 54 C A retiree annuity supplement is payable before age 62 in addition to the basic annuity. The FERS 1.1 percent formula does not apply to individuals who, at the time of the separation on which retirement is based, are LEOs. Transitional Provisions (FERS) Mandatory Separation Detailed examples of annuity computations can be found in CSRS & FERS Handbook, Chapter 54, Section 54 C N/A Any service as a LEO under CSRS definitions that was performed before the date on which an employee becomes subject to FERS, is included in determining the employee s length of law enforcement service under FERS for the purpose of retirement eligibility and mandatory separation. Standard mandatory separation age for LEOs is age 57 unless the employee does not have the required 20 years of service. In these instances, the employee must be separated on the last day of the month in which they complete 20 years of service. NOTES: 1) The employing office must notify the employee in writing of the date FAS 14 of 58 May 2006

15 Special Retirement Provisions for Law Enforcement Officers (LEOs) TOPIC CSRS FERS Mandatory Separation (continued) of separation at least 60 days in advance of the separation date; if not, employee is separated at the end of the month that occurs 60 days after the date of the notice. 2) Employees who are eligible for retirement under the special provisions but who are not currently occupying a LEO position are not required to retire and are not subject to mandatory separation. 3) Potentially creditable civilian service, even though a deposit is not Disability Retirement paid, counts in determining the 20 years for mandatory separation. The disability formula for CSRS The disability formula for FERS will be used. will be used. Death in Service If the employee has completed 20 years of CSRS LEO service, the special retirement formula will be used, regardless of the employee's age at retirement (BAL ). The spousal survivor annuity will be computed using the enhanced special retirement formula if: The employee was a LEO at the date of death, and The employee had completed at least 20 years of LEO service as of the date of death. If the employee was not a LEO at the date of death, the special formula for LEOs would be used only if the employee was eligible to retire under the special retirement provisions (age 50 with 20 years of LEO service). If the requirements stated above were not met, the spousal annuity would be computed under the CSRS general formula. The special retirement formula will be used to compute the earned annuity only if the employee is eligible for special retirement (i.e., age 50 with 20 years of LEO service; or any age with 25 years of LEO service). The enhanced special retirement formula would be used to calculate the survivor benefit only if the employee would have been eligible to retire under the special retirement provisions: The employee was age 50 with at least 20 years of LEO service; or The employee was any age with at least 25 years of LEO service. If, at the date of death, the employee did not meet the age and/or service requirements for LEO retirement, the spousal survivor annuity would be computed under the FERS general formula. FAS 15 of 58 May 2006

16 Special Retirement Provisions for Firefighters (FFs) TOPIC CSRS FERS References United States Code: 5 U.S.C (21); 8335(b); 8336(c) Code of Federal Regulations: 5 C.F.R. 831, Subpart I The CSRS and FERS Handbook for Personnel and Payroll Offices: Chapters 46, 54, 61 and 70 Firefighter (FF) Definitions NOT Included in the FF Definition Primary Duties Definition An employee in a position whose duties are primarily to perform work: Directly connected with the control and extinguishment of fires or the maintenance and use of firefighting apparatus and equipment. Includes an employee who moves directly from a primary FF position to a secondary position. United States Code: 5 U.S.C (14); 8412(d); 8425 Code of Federal Regulations: 5 C.F.R. 842, Subpart H The CSRS and FERS Handbook for Personnel and Payroll Offices: (Chapters 46, 54, 61 and 70) An employee occupying a rigorous position whose primary duties are to perform work: Directly connected with the control and extinguishment of fires. Includes an employee occupying a rigorous FF position who moves directly to a secondary position. An employee whose primary duty is the performance of routine fire prevention inspections is excluded from this definition. Those duties of a position that: Are paramount in influence or weight; that is, constitute the basic reasons for the existence of the position; Occupy a substantial portion of the individual s working time over a typical work cycle; and Are assigned on a regular and recurring basis. Primary (CSRS) and Rigorous (FERS) Definitions NOTE: Duties that are of an emergency, incidental, or temporary nature cannot be considered primary even if they meet the substantial portion of time criterion. A position whose primary duties are - To perform work directly connected with controlling and extinguishing fires or Maintaining and using FF apparatus and equipment. A position in which the duties are so rigorous that employment opportunities should be limited through establishment of a maximum entry age and physical qualifications, to young and physically vigorous individuals, whose primary duties are: FAS 16 of 58 May 2006

17 Primary (CSRS) and Rigorous (FERS) Definitions (continued) Special Retirement Provisions for Firefighters (FFs) TOPIC CSRS FERS NOTE: Although CSRS regulations do not label positions as rigorous or require employees to be young and physically vigorous, maximum entry age and physical qualification standards apply to CSRS primary positions. Secondary Position Definitions Conditions for Coverage Primary (CSRS) and Rigorous (FERS) To perform work directly connected with controlling and extinguishing fires. A position that: Is in the firefighting field; Is in an organization having a firefighting mission; and Is either: Supervisory, that is, a position whose primary duties are those of a first-level supervisor of FFs in primary positions; or Administrative, that is, an executive, managerial, technical, semiprofessional, or professional position for which experience in a primary firefighting position, or equivalent experience outside the Federal government, is a mandatory prerequisite. An employee s service in a position that has been determined by the Agency head to be a primary position is covered under the special group provisions for FFs. An employee s service in a position that has been determined by the Agency head to be a qualifying rigorous position is covered under the special group provisions for FFs. Conditions for Coverage - Secondary Positions TRANSFER REQUIREMENT An employee s service in a position that has been determined by the Agency head to be a qualifying secondary position is covered under the special provision, if all the following requirements are met: The employee, while covered under the special provision, moves directly (that is, without a break in service exceeding 3 days) from a primary position to a secondary position; and If applicable, the employee has been continuously employed in An employee s service in a position that has been determined by the Agency head to be a qualifying secondary position is covered under the special provision, if all the following requirements are met: The employee, while covered under the special provision, moves directly (that is, without a break in service exceeding 3 days) from a rigorous position to a secondary position; and The employee has completed 3 years of service in a rigorous FAS 17 of 58 May 2006

18 Conditions for Coverage - Secondary Positions TRANSFER REQUIREMENT (continued) Special Retirement Provisions for Firefighters (FFs) TOPIC CSRS FERS a secondary position or positions since moving from a primary position without a break in service exceeding 3 days. Requests from Employees or Individuals An employee or former employee (or survivor of a former employee) who believes that a period of service in an unapproved position qualifies as service in a primary or secondary position may request a determination that the service is creditable under the special provisions for FFs. FF credit for past service generally will not be granted for a period greater than 1 year prior to the date that the request was received from the individual. The employee (former employee or survivor) bears the burden of proof with respect to credit under the special provisions covering FFs. The request may be submitted to the current or former employing office or OPM. Documentation may include the number of fires fought, names of fires fought, dates of fires, and position occupied while on firefighting duty. position, including any such service during which no FERS deductions were withheld; and If applicable, the employee has been continuously employed in a secondary position or positions since moving from a primary position without a break in service exceeding 3 days. If an employee is not in an approved FF position (rigorous or secondary), the employee may, within 6 months after entering the position or within 6 months after any significant change in the position, formally and in writing seek a determination from the employing agency regarding their position. If the employee does not request a position determination within 6 months, the Agency Head s determination that the service was not covered under the special group provisions at the time the service was performed is presumed to be correct. This presumption may be rebutted by a preponderance of the evidence that the employee was unaware of their status or was prevented by cause beyond their control from requesting that the official status be changed at the time the service was performed. In response to the individual FAS 18 of 58 May 2006

19 Requests from Employees or Individuals (continued) Special Retirement Provisions for Firefighters (FFs) TOPIC CSRS FERS An employee may appeal the final Agency decision for individual credit determinations to the MSPB. Retirement Code Retirement Contributions Retirement Eligibility Requirements Annuity Computations CSRS = 6 (code eff. Oct 1, 1980) CSRS-Offset = E Additional deductions of ½ percent must be withheld from pay for covered/creditable service after Jan 1, Age 50 with 20 years of FF service The employee does not need to separate from a FF position to be eligible for special retirement. However, the employee must be separated from a position covered by retirement deductions and meet the CSRS one-out-of-two requirement. Unused sick leave cannot be used for minimal eligibility requirements. 2.5 percent X High-3 Average Salary X 20 Years of FF Service plus 2 percent X High-3 Average Salary X Additional years of creditable service exceeding 20 years (FF & non-ff) Detailed examples of annuity computations can be found in CSRS & FERS Handbook, Chapter 54, Section 54 C request for approval of a position as a FF, the agency must issue a written decision. An employee may appeal the final agency decision regarding a position determination to the MSPB. FERS = M Additional deductions of ½ percent must be withheld from pay for covered/creditable service. Age 50 with 20 years of FF service, or Any age with 25 years of FF service The employee does not need to separate from a FF position to be eligible for special retirement. The employee must be separated from a position covered by FERS retirement deductions. 1.7 percent X High-3 Average Salary X 20 Years of FF Service plus 1 percent X High-3 Average Salary X Additional years of creditable service exceeding 20 years (FF & non-ff) A retiree annuity supplement is payable before age 62 in addition to the basic annuity. The 1.1 percent formula does not apply to individuals who, at the time of the separation on which FAS 19 of 58 May 2006

20 Special Retirement Provisions for Firefighters (FFs) TOPIC CSRS FERS retirement is based, are FFs. Annuity Computations (continued) Transitional Provisions (FERS) Mandatory Separation Disability Retirement Detailed examples of annuity computations can be found in CSRS & FERS Handbook, Chapter 54, Section 54 C N/A Any service as a FF under CSRS definitions that was performed before the date on which an employee becomes subject to FERS is included in determining the employee s length of FF service under FERS for the purpose of retirement eligibility and mandatory separation. The standard mandatory separation age for FFs is age 57 unless the employee does not have the required 20 years of service. In these instances, the employee must be separated on the last day of the month in which they complete 20 years of service. NOTES: 1) The employing office must notify the employee in writing of the date of separation at least 60 days in advance of the separation date. 2) Employees who are eligible for retirement under the special provisions but who are not currently occupying a FF position are not required to retire and are not subject to mandatory separation. 3) Although maximum entry ages were generally not officially established under CSRS, officials should be aware of the conditions of employment to ensure there is no adverse impact on activity missions. 4) Potentially creditable civilian service, even though a deposit is not paid, counts in determining the 20 years for mandatory separation. The disability formula for CSRS The disability formula for FERS will be used. If the employee has will be used. The special completed 20 years of CSRS FF retirement formula will be used to service, the special retirement compute the earned annuity only if formula will be used to compute the employee is eligible for special the earned annuity, regardless of retirement (i.e., age 50 with 20 the employee's age at retirement years of FF service; or any age with (BAL ). 25 years of FF service). FAS 20 of 58 May 2006

21 Special Retirement Provisions for Firefighters (FFs) TOPIC CSRS FERS Death in Service The spousal survivor annuity will be computed using the enhanced special retirement formula if: The employee was a FF at the date of death, and The employee had completed at least 20 years of FF service as of the date of death. If the employee was not a FF at the date of death, the special formula for FFs would be used only if the employee was eligible to retire under the special retirement provisions (age 50 with 20 years of FF service). If the requirements stated above were not met, the spousal annuity would be computed under the CSRS general formula. Service Credit Tips The enhanced special retirement formula would be used to calculate the survivor benefit only if the employee would have been eligible to retire under the special retirement provisions: The employee was age 50 with at least 20 years of FF service; or The employee was any age with at least 25 years of FF service. If, at the date of death, the employee did not meet the age and/or service requirements for FF retirement, the spousal survivor annuity would be computed under the regular FERS general formula. Details or Temporary Promotions CSRS/FERS The employee s position of record determines whether the service is covered under special retirement. Nondeduction Service CSRS - Service not subject to CSRS deductions (i.e., temporary, TERM, TAPER appointments, etc.) is always creditable service for eligibility to retire as a LEO/FF if: The position is approved (LEO/FF) and the employee would have been covered under the special retirement provisions, if their appointment was not excluded from retirement coverage, FAS 21 of 58 May 2006

22 However, if the service was performed on or after Oct 1, 1982, the employee must make a deposit equal to 7.5 percent of basic pay, with interest, for the service to be creditable for the computation of the annuity. FERS - Service not subject to FERS deductions (i.e., temporary appointment), that is performed before 1989, may be creditable as LEO/FF service if: The position is an approved position and the employee would have been covered under the special retirement provisions, if their appointment was not excluded from retirement coverage, and The employee made a deposit equal to 1.3 percent of basic pay, with interest, for the service. Additional Notes on Service Credit Length of Service: Credit for any service as a LEO/FF under CSRS definitions that was performed before the date on which an employee becomes subject to FERS, even though a deposit is not paid, is included in determining the employee s length of LEO/FF service under FERS for the purposes of retirement eligibility and mandatory separation. Direct Transfer: An employee who met the direct transfer requirement for coverage in a secondary position under CSRS is considered to have met the FERS direct transfer requirement. Three Year Rule: CSRS service in a primary position can be counted as service in a rigorous position for purposes of the FERS 3-year transfer requirement. Three Year Rule: If an employee, serving in a secondary position under CSRS special retirement provisions, elects FERS (without a break in service greater than 3 days) the 3-year rigorous service transfer requirement is deemed to have been met. Steps for Determining CSRS & CSRS-Offset Special Retirement Coverage Law Enforcement Officers and Firefighters 1. Is the employee assigned to a position that has been approved for special retirement coverage? A. Don't know? Code the employee as CSRS (code 1) or CSRS Offset (code C). Contact the special retirement section at your Component headquarters. They maintain a list of all approved positions and can tell you whether the position has been approved. Find out whether the position is approved as a primary position or FAS 22 of 58 May 2006

23 a secondary (supervisory or administrative) position. When the position approval status has been verified, continue with the special coverage determination for the employee. B. Yes. Continue to question 2. C. No. The employee will be CSRS (code 1) or CSRS-Offset (code C). The information below discusses the agency actions to request position approval and employee actions to request individual service credit. Position Approval: The employing office may request approval of special retirement coverage for the position. Chapter 830 of the Civilian Personnel Manual (DoD M) outlines the procedure for requesting coverage. Your Component headquarters special retirement section can provide additional guidance to help you submit the request. If the position is approved for coverage by the Agency Head, continue with the coverage determination for the employee (start over at question 1). Individual Service Credit: If the employing office does not request position approval or if the position approval has already been denied, the employee may request an individual service credit determination. The employing office is not required to issue the employee a notice informing them of the right to request individual service credit. An employee's request for individual service credit determinations is governed by the regulations in 5 C.F.R The employee has the burden of proving that their position meets the legal definition of LEO or FF. The definitions can be found in 5 C.F.R If the employee is able to prove that their position (or past service in a position) should be covered under the special retirement provisions, they will be granted special retirement credit, but the credit may be limited. Credit will not be granted for a period greater than 1 year prior to the date of the employee's request. The agency will enforce this time limit unless the employee proves that they were prevented from circumstances beyond their control from submitting the request within the time limit. Only the Agency Head, Under Secretary of Defense for Personnel and Readiness, USD (P&R), has the authority to waive the time limit. Requests that do not satisfy the requirements under CSRS and FERS are disapproved by the head of the Component (or their designee). If a request for an individual service credit determination is denied by the Component, the employee will have the right, under 5 C.F.R , to appeal that decision to the MSPB, FAS 23 of 58 May 2006

24 Employees that are granted individual service credit (by the Agency Head or MSPB) are not coded under the special retirement provisions. They are coded as CSRS (code 1) or CSRS Offset (code C). If service credit is approved by the Agency Head, it will specify the period of service for which special retirement credit is granted. If service credit is granted by MPSB, an agency memo must be prepared to document the amount of service credit granted by the MSPB order. Procedures within your Component will dictate whether this agency memo is written by the Component headquarters special retirement division or by the employing office. The memo from the agency and the MSPB decision are permanently filed in the employee's Official Personnel Folder (OPF). The agency must collect the additional ½ percent retirement contributions for the period of service granted by the Agency Head or MSPB. At the time the employee retires, the Agency Head memo and/or the MSPB decision is used to verify the special retirement service. 2. You've verified that the employee's position is approved for special retirement coverage. Was the position coverage approved under the primary category or the secondary (administrative or supervisory) category? A. Don't know. If you have an approval memo (from OPM or the Agency Head), it will state whether the approval is under the primary or secondary category. If you don't have the approval memo, contact your Component headquarters special retirement division to find out whether the position is approved as primary or secondary. Continue with the special coverage determination when you find the answer. B. Primary position: code the employee as CSRS Special (code 6) or CSRS Offset Special (code E). Stop. C. Secondary position: the employee must satisfy the transfer requirements to be covered under the special retirement provisions. Continue to question You've verified that the employee's position is approved for special retirement under the secondary category. Now, you need to determine whether the employee meets (or has met) the transfer requirements for coverage in a secondary position. Was the employee transferred, reassigned, or appointed to this secondary position directly from a primary position? "Directly" means without a break greater than 3 days. FAS 24 of 58 May 2006